US Labor Market Posts Weakest Annual Job Growth Since Pandemic

Recent labor market data for the United States show that job growth slowed considerably in 2025, with December marking a particularly weak month for new positions.

Throughout 2025, the US economy recorded its lowest annual job gain since the pandemic, with a total increase of about 584,000 jobs. December’s addition of roughly 50,000 jobs reflected this broader trend of limited employment expansion.

The unemployment rate in December 2025 was reported at approximately 4.4%, representing a slight decrease from previous months. However, this improvement in the unemployment rate occurred alongside downward revisions to job growth figures for both October and November, which were reduced by 68,000 and 8,000 jobs respectively.

Employment gains in December were concentrated in sectors such as health care, social assistance, leisure and hospitality, and government. In contrast, industries including retail trade, manufacturing, construction, and professional services experienced job losses during the same period.

What the numbers show

• About 50,000 jobs were added in December 2025
• Annual job growth for 2025 was approximately 584,000 jobs
• The unemployment rate in December 2025 was around 4.4%
• Job growth for October and November 2025 was revised downward by 68,000 and 8,000 jobs
• Long-term unemployment and involuntary part-time work each rose by over 1 million in 2025

Indicators of labor market weakness extended beyond job creation and unemployment rates. Over 1 million more individuals experienced long-term unemployment, involuntary part-time work, or job loss during 2025 compared to the previous year.

According to the Federal Reserve Bank of New York, household expectations for finding a job reached their lowest level in the history of the Survey of Consumer Expectations in December 2025. This decline in confidence was noted as part of the broader labor market conditions at the end of the year.

The distribution of job changes across sectors highlighted uneven outcomes for workers, with some industries adding jobs while others reduced their workforce. This pattern contributed to the overall weak performance in employment growth for the year.

Annual labor market data for 2025 suggest that the pace of job creation slowed, with both headline numbers and underlying indicators pointing to a period of limited improvement for US workers.

* This article is based on publicly available information at the time of writing.